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Yield curve inverts again on Friday as Trump reignites fears the trade war will lead to a recession
CNBC.com ^ | AUG 23 2019 | Thomas Franck

Posted on 08/23/2019 10:41:11 AM PDT by Berlin_Freeper

The critical spread between the 10-year Treasury yield and the 2-year Treasury yield inverted Friday after President Donald Trump characterized China President Xi Jinping as an “enemy” and ordered American companies to steer clear of trade with Beijing.

The president tweeted Friday morning that he was ordering “our great American companies” to “immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.”

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy
KEYWORDS: stockmarket; trumpchina; trumpeconomy; yieldcurve
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1 posted on 08/23/2019 10:41:11 AM PDT by Berlin_Freeper
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To: Berlin_Freeper

Should read as FED reignites fears they’re going to let the yield curve invert through inaction.


2 posted on 08/23/2019 10:43:58 AM PDT by DannyTN
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To: DannyTN

I seriously believe Trump is setting the Federal Reserve up to take the fall if a recession occurs in the next couple of years. It is a brilliant move on his part because the Fed is so secretive and at times blindingly stupid.


3 posted on 08/23/2019 10:46:57 AM PDT by sarge83
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To: Berlin_Freeper

There should be no fear of trade war. We should have an indisputable trade war. No fear needed. We just need 100% tariffs on products coming from China. Every dollar going to China goes to pay for their Army. It goes to pay for their pollution. It goes to pay for their hackers and lobbyists.

Every dollar in Tariffs from China pays off our national debt. The world would be better off if our China trade was half or less than it is now. The huge production in China was stolen from the US and the rest of the world. The rest of the world would be better off if China did not exist.


4 posted on 08/23/2019 10:48:06 AM PDT by poinq
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To: DannyTN

“ordered” ?


5 posted on 08/23/2019 10:50:32 AM PDT by kanawa (Trump Loves a Great Deal (NorthernSentinel))
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To: Berlin_Freeper

All that means is that it is cheaper to borrow money for the short term than the long. Good for you. Buy the 2-year treasuries..


6 posted on 08/23/2019 10:51:29 AM PDT by Lisbon1940 (No full-term Governors (at the time of election))
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“ordered”, discussed over on this thread...

http://www.freerepublic.com/focus/f-chat/3773934/posts


7 posted on 08/23/2019 10:55:21 AM PDT by kanawa (Trump Loves a Great Deal (NorthernSentinel))
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To: DannyTN

Should read as FED reignites fears they’re going to let the yield curve invert through inaction.

...

Yep, the Fed has manipulated short term rates to be much higher than what the market would charge.


8 posted on 08/23/2019 10:55:42 AM PDT by Moonman62 (Charity comes from wealth.)
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To: Berlin_Freeper
AUGUST 18, 2019 - President Trump Says U.S. Is 'Doing Very Well With China' Amid Continuing Trade Talks
9 posted on 08/23/2019 10:57:03 AM PDT by Berlin_Freeper
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To: Berlin_Freeper

Or it could just be profit taking after 2 consecutive up days. The DJIA is STILL more than 300 points above August 14.


10 posted on 08/23/2019 10:59:08 AM PDT by Vigilanteman (The politicized state destroys aspects of civil society, human kindness and private charity.)
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To: sarge83
I seriously believe Trump is setting the Federal Reserve up to take the fall if a recession occurs in the next couple of years.

Well of course he is.

It is a brilliant move on his part because the Fed is so secretive and at times blindingly stupid.

Assuming people believe him.

11 posted on 08/23/2019 11:01:23 AM PDT by DoodleDawg
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To: poinq
Every dollar in Tariffs from China pays off our national debt.

Not when you're adding to that debt at the rate of a trillion dollars a year.

12 posted on 08/23/2019 11:03:46 AM PDT by DoodleDawg
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To: Berlin_Freeper

RE: Yield curve inverts again on Friday

The Chinese Yuan is dropping. The EU’s interest rates are negative.

So, where do you think investors are putting their money?

Now you know why the yield curve inverts.


13 posted on 08/23/2019 11:11:14 AM PDT by SeekAndFind (look at Michigan, it will)
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To: Berlin_Freeper

RE: President Trump Says U.S. Is ‘Doing Very Well With China’ Amid Continuing Trade Talks

He said something similar a few days before he reimposed 10% tariffs on $300 Billion worth of Chinese imports.


14 posted on 08/23/2019 11:12:39 AM PDT by SeekAndFind (look at Michigan, it will)
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To: sarge83
I seriously believe Trump is setting the Federal Reserve up to take the fall if a recession occurs in the next couple of years

"The Buck Stops Here."

15 posted on 08/23/2019 11:12:40 AM PDT by dfwgator (Endut! Hoch Hech!)
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To: SeekAndFind
U.S. stocks and Treasury yields sank on Friday, as President Donald Trump said that American companies are “hereby ordered to immediately start looking for an alternative to China.”
16 posted on 08/23/2019 11:17:35 AM PDT by Berlin_Freeper
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To: SeekAndFind
RE: President Trump Says U.S. Is ‘Doing Very Well With China’ Amid Continuing Trade Talks

He said something similar a few days before he reimposed 10% tariffs on $300 Billion worth of Chinese imports.

Extra points for consistency.
17 posted on 08/23/2019 11:18:34 AM PDT by Berlin_Freeper
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To: Berlin_Freeper

I just swore enough to be kicked out of any old ladies’ sewing circle. The difference is .002%! For a principal of 100,000, that is $2 dollars!!!!! It is meaningless!!!!!

But with the democrat-controlled media, and a brain-challenged public, this will do what it is designed to do: make some people hesitate to put money in stocks, which will make the sacred DOW drop, which will convince some mental midgets to wait before investing, which will make the all holy DOW drop some more. After a few weeks of all the media repeating the word “recession” more and more idiots will believe it.

Their goal is a real recession. They have until next October.

Expect to see those stock pictures of fat stock traders in their suits looking at monitors with dropped jaws. Shutterstock can expect to make a lot of money selling those pictures.


18 posted on 08/23/2019 11:18:43 AM PDT by I want the USA back (The further a society drifts from the truth, the more it will hate those who speak it. Orwell.)
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To: Lisbon1940

Sorry, that’s backwards. What it means is that the yield on shorter term treasuries is higher than longer term ones. Yield is calculated on both price related to face value and coupon interest (longer term bond).

Interest rates you pay are based on a margin over yields for many loans. Fed Funds an Discount rates are reserved for special customers (banks, countries central banks,etc.


19 posted on 08/23/2019 11:30:19 AM PDT by Woodman
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To: sarge83

I seriously believe Trump is setting the Federal Reserve up to take the fall if a recession occurs in the next couple of years. It is a brilliant move on his part because the Fed is so secretive and at times blindingly stupid.

- -

They’re not stupid, they’re deliberate. The Fed is a bank cartel.


20 posted on 08/23/2019 11:38:06 AM PDT by Flick Lives (MSM, the Enemy of the People since 1898)
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